Canadian PM unveils budget to curb reliance on US.
Mark Carney’s government is presenting its first budget. The Canadian prime minister said the budget is a “response” to an economy that has been hit hard by U.S. trade tariffs.
Carney, who headed the central banks of Canada and England before entering politics this year, has positioned himself as the ideal person to lead Canada through the turmoil and unprecedented crisis in relations with the United States caused by President Donald Trump’s actions.
Trump’s tariffs have hit Canada hard, leading to rising unemployment and straining businesses in key sectors including autos, aluminum and steel.
Carney told reporters in South Korea after the Asia summit, referring to the negative impact of the new U.S. trade policy on the Canadian economy. “Where can we find growth given the obstacles created by the new U.S. trade policy? What this budget does is answer that question,”
The Canadian government has kept the details of the new budget secret until it is officially presented, but it is expected to include a significant increase in defense spending and allocation of funds to national projects to support the country’s economic sovereignty in the face of a crisis in relations with the United States, while aligning with NATO goals.
The Canadian prime minister has previously said that the close economic relationship between his country and the United States is over, and his government’s first budget bill will reduce economic and security dependence on the United States.